Student loan repayment options

A student loan is an investment in your future. Discover some ways you can plan your budget to proactively manage your loan payments.

Only borrow what you need

Generally, you’ll start repaying student loans six months after you graduate or leave school – this means it’s important to borrow responsibly from the start. If you aim to keep your total loan payments to no more than 10-15% of your anticipated post-college income, you should be able to maintain a realistic repayment timeline. To get a better sense of what your payments will be, try using Wells Fargo’s Student Loan Calculator and loan repayment calculators. Also, consider paying off other debts during your grace period so that you can focus on student loans when they’re due.

Pay on time and often

It’s important to avoid falling behind on your repayment schedule since you can potentially face a late fee on top of your payments. Be proactive to make sure you stay in the clear. Creating a budget can help you make on-time payments. First, record your monthly income and subtract your expenses, including your loan payments. Then, see where you can cut costs, and possibly make extra payments. This will help repay your loan and reduce the amount of interest owed. Even one extra payment a year can significantly reduce your total loan costs. If you’re experiencing a difficult situation that hinders your ability to repay, contact your lender to see how they can help with a deferment or forbearance option.

Shorten your student loan payments

By shortening your payment schedule, you may save on the interest you pay over the life of the loan. Wells Fargo provides a range of private student loan repayment options. Also, try to take advantage of any discounts your lender offers, such as automatic payment enrollment.

By creating a realistic repayment plan, you can focus on creating a successful and healthy financial future.